Eastern Railroad Discussion > Cut staff, renovate ceo offices

Cut staff, reduce safety, reduce maintenance... Spend $1.8 million renovating the executive offices.

You can easily guess who.

http://www.jaxdailyrecord.com/article/csx-wants-to-renovate-jacksonville-headquarters

Michael

...and I thought this would have to be a link from 'The Onion'. ( Shakes head )

Hm, is this all so he has a space comfy enough to use one a day a week?

Posted from Android

Not to justify anything that HH does, but I was in CSX HQ a year ago on business. The parts of the building I was in were very dated - kind of a late 1970's feel to the place. The place could use a little updating.

njmidland Wrote:
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> Not to justify anything that HH does, but I was in
> CSX HQ a year ago on business. The parts of the
> building I was in were very dated - kind of a late
> 1970's feel to the place. The place could use a
> little updating.

When Jim Hill ran Great Northern, the General Office Building was minimally appointed as Hill believed that his money should go to what makes money, and the General Office does not.

That is a full reversal from today's attitude that the people who count the money are for more important than the people who make the money.

Maybe the difference is that Jim Hill built a railroad empire from scratch, he wasn't a professional CEO.

TAW

njmidland Wrote:
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> Not to justify anything that HH does, but I was in
> CSX HQ a year ago on business. The parts of the
> building I was in were very dated - kind of a late
> 1970's feel to the place. The place could use a
> little updating.

Even if you're right, (no reason not to believe you) it sends the wrong message at the wrong time.

EHH is entirely tone deaf, I haven't seen any evidence he particularly cares what people think. He's laser focused on share price.

The $1.8 million updating sends a terrible message. To him, it's not even a rounding error. To somebody who just got fired from a $50,000 job, it's a huge deal. New furniture will contribute more to this company than I do? Nonsense.

njmidland Wrote:
-------------------------------------------------------
> Not to justify anything that HH does, but I was in
> CSX HQ a year ago on business. The parts of the
> building I was in were very dated - kind of a late
> 1970's feel to the place. The place could use a
> little updating.

To me the article was not clear on how much upgrading was going to be done on the whole building versus the executive suites. I am not surprised that the building could use some repairs and upgrading. That is likely overdue. Now if CSX is able to sell the other office building, this might be a really great move.

The article states the building was put up in 1959-1960. Who built it as there was no CSX then?
Rich S

richs Wrote:
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> The article states the building was put up in
> 1959-1960. Who built it as there was no CSX
> then?
> Rich S

ACL.

1959-1960 is pretty old in office building terms. Tough to run conduit in solid slab floors. Small floor plates, lots of elevator expense. Tough to cool, and likely to use older HVAC.

I read all the EHH posts and its like deja vu. Same script as the CP.
For a guy whos ill and on oxygen at his home in Florida he's a piece of work!

Mike Bannon
St Catharines, ON

algoma11 Wrote:
-------------------------------------------------------
> I read all the EHH posts and its like deja vu.
> Same script as the CP.
> For a guy whos ill and on oxygen at his home in
> Florida he's a piece of work!

Really didn't know much about this dude until all the posting recently, he really seems out there.  Wonder if HE was drug tested as a condition of employment.
Bet he attends the church of the almighty dollar...

partsguy Wrote:
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> algoma11 Wrote:
> --------------------------------------------------
> -----
> > I read all the EHH posts and its like deja vu.
> > Same script as the CP.
> > For a guy whos ill and on oxygen at his home in
> > Florida he's a piece of work!
>
> Really didn't know much about this dude until all
> the posting recently, he really seems out there.
>  Wonder if HE was drug tested as a condition of
> employment.
> Bet he attends the church of the almighty
> dollar...

There was some discussion about a physical for EHH. My understanding is the company waived that requirement. And, signed the $85 million deal.

As the Shareholder Proxies always tell us, "You have to pay for quality." And then they urge us to vote "yes" on the proxy ballot for whatever executive compensation they deem appropriate.

The shareholder proxies are a lot of fun in the exec compensation give-away department.

Typically, the company will say something like, "we want to pay a competitive package so we can attract and retain premium talent". And will establish a protocol that it will match the 80th percentile of its other company peer group for similar execs.

(Most smart observers have already spotted the flaws. If everybody benchmarks themselves against the 80th percentile, then pay will escalate rapidly, since 79% are below this level. And, since the company can select the peer group on which the calculation is made, they can exclude some dead beats who might draw down the average. And they pick the consulting company that does the bench marking and would like to do so again next year.)

Barron's Magazine does an anti-comp practices article every year, listing the "most overpaid CEOs" based on the company's performance. Some people lead the list year after year until an activist comes in and dethrones them. Boards of Directors seem not to notice these articles, for some reason.

I don't mean to condone anything that EHH does, but I think people are rushing to put the worst face on anything that CSX does. CSX leases a considerable amount of office space in Jacksonville other than the GOB. Downsizing begun before EHH, and certainly that which has followed has reduced the total amount of office space required. Functions that previously occupied leased space are being consolidated in the GOB and certain renovations are necessary to accommodate them. Whether any of this involves the executive floor I don't know but rather doubt. Things are bad enough without us manufacturing issues when there are so many genuine ones to think about.

Gordon

The article sounds specific in stating that the permits are for the renovation of the executive suite, not the building as a whole.

If true that the office building is old, it may need upgrading to make it marketable if the company is looking to sell it and move hq. It's hard to say without having inside knowledge of the situation.

People who I know update their house every few years to keep it marketable in case they decide to or have to move. The market for people would want to buy a house with 70's style flooring, one without air conditioning, or one heater by a wooden fireplace in the common room is small and niche. Similarly, an office building without modern upgrades would be hard to sell off.

$90 per square foot for a remodel. The only thing I see wrong with the project is how it is being viewed.